L. 1920, ch. 563. Mutual automobile casualty insurance corporations.

§ 341.

statement filed by it, that the premium cost of the insurance on existing policies falls below one hundred thousand dollars, the superintendent of insurance shall issue an order directing the corporation, within a period of ninety days thereafter, to secure bona fide applications for insurance in the corporation, the premium cost of which insurance, together with the premium cost of existing policies, shall be not less than one hundred thousand dollars. In the event that such applications for insurance shall not be obtained within such period, the superintendent of insurance may, in his discretion, take the proceedings for the liquidation of such corporation under section sixty-three of this chapter.

The members of the corporation shall be policyholders therein, and when any member shall cease to be a policyholder, he shall cease at the same time to be a member of the corporation. A corporation, partnership, association or joint stock company, may become a member of such insurance corporation, and may authorize any person to represent it in such insurance corporation, and such representative shall have all the rights of any individual member; but neither the representative nor the said corporation, partnership, association or joint stock company shall be subject to any greater liability than as if an individual member.

Such corporation may borrow, or agree to repay, any reasonable sum or sums of money, not exceeding five thousand dollars, used to defray the expenses of its organization, or any sum or sums of money deemed necessary to be provided for the purposes of enabling it to comply with any requirement of the law. Any director, officer or member of such corporation, or any other person, firm or corporation, may loan or advance to such corporation any such sum or sums of money, upon an agreement that the same with interest at a rate not to exceed six per centum per annum shall be repaid only out of surplus earnings or profits of such corporation with the approval of the superintendent of insurance whenever, in his judgment, the financial condition of the corporation warrants it, except that such approval shall not be withheld if after such repayment shall be made, such corporation shall have and be in possession of a surplus equal to ten per centum or more of its gross annual premium income. Such surplus, however, shall be ascertained for the purposes of such repayment, upon the basis of the unearned premium reserves being charged at a sum equal to one hundred per centum of the unearned portion of the gross premiums charged to policyholders for the policies in force from their dates of issue. Any such sum or sums shall not form a part of the legal liabilities of the corporation, but until repaid all statements filed with the superintendent of insurance shall show the amount thereof.

Such corporation may classify the risks insured therein at the time of the insurance and issue policies under different rates. (Added by L. 1919, ch. 13, and amended by L. 1919, ch. 389 and L. 1920, ch. 563, in effect May 10, 1920.)

§ 344.

Mutual automobile casualty insurance corporations.

L. 1919, ch. 389.

§ 344. Assets; liabilities; reserves; suspensions; cancellation and reinstatement of certificates; expenses.-When an examination is made by the authority of the superintendent of insurance into the affairs of any such corporation, or any such corporation renders a statement to the insurance department, the superintendent shall allow as assets only such investments as are authorized by the existing laws of this state in relation to stock insurance companies at the date of such examination or of rendering such statement, but unpaid premiums on policies or renewals written within three months shall be admitted as available resources. In estimating its liabilities for the first five years after such corporation has commenced the business of writing insurance, there shall be charged a sum equal to eighty per centum of the unearned portion of the gross premiums charged to its policyholders for the policies in force from their dates of issue. After such five year period such liability shall be computed at the full one hundred per centum of the unearned portion of the gross premiums so charged. Such corporation shall also be required to maintain a reserve for outstanding losses on the same basis as is required of stock insurance companies in relation to the same classes of insurance except that until the total premium income of such corporation exceeds the sum of five hundred thousand dollars per annum, the reserve for all liability policies shall be computed as follows:

1. For all liability policies written during the three years immediately preceding the date as of which the statement is made, such reserve shall be fifty per centum of the earned liability premiums of each of such three years less all loss and loss expense payments made under liability policies written in the corresponding years; but in any event such reserve shall, for each of such three years, be not less than the estimated amount of all outstanding liability claims.

2. For all liability claims under policies written more than three years prior to the date as of which the statement is made, the reserve shall be computed by estimating the amounts due under each individual claim.

The superintendent of insurance may suspend or cancel the certificate issued by him, authorizing such corporation to transact such insurance business, at any time when the assets of such corporation are insufficient to insure and secure the payment of its policy and other obligations; and he may reinstate or renew said certificate whenever by assessment or otherwise said assets have been increased to a sum sufficient to insure and secure the payment of the policy and other obligations of such corporation. The expenses of management of any such corporation shall not exceed in any one calendar year thirty per centum of its premium income in such year, but the expenses of management shall not be held to include taxes and expenses incurred in the investigation, adjustment and settlement of claims. (Added by L. 1916, ch. 13, and amended by L. 1919, ch. 389.)

L. 1920, ch. 563. Mutual automobile casualty insurance corporations. §§ 343, 349. § 345. Dividends.-The board of directors may from time to time fix and determine the amount to be declared and paid as a dividend, upon policies expiring during each year, after retaining sufficient sums to pay all outstanding policy and other obligations. Such dividends shall not take effect or be distributed until approved by the superintendent of insurance, after such investigation as he may deem necessary, but in no event shall such dividends be declared or paid during the first five years after the corporation has been authorized to transact business, unless its surplus is ascertained for the purposes of such dividend upon the basis of the unearned premium reserve being charged at a sum equal to one hundred per centum of the unearned portion of the gross premiums charged to policyholders for the policies in force from their dates of issue. (Added by L. 1916, ch. 13, and amended by L. 1919, ch. 389.)

§ 349. Limitation of risk.-No corporation transacting the business of insurance in this state under the provisions of this article shall expose itself to any loss on any one risk or hazard, except as hereinafter provided, in an amount exceeding ten per centum of its actual net and contingent assets, said contingent assets being the aggregate amount of the contingent mutual liability of its members for the payment of losses and expenses not provided for by its cash funds, provided, however, that in any event any such corporation may assume liability on any one risk or hazard for the sum of ten thousand dollars or less. No portion of any such risk or hazard which shall have been reinsured in a corporation authorized to do insurance business in this state shall be included in determining the limitation of risk prescribed in this section. (Added by L. 1920, ch. 563, in effect May 10, 1920.)

INTERNATIONAL BOUNDARY COMMISSION.

See Boundary Commission.

JAIL LIBERTIES.

Action upon undertaking; Prison L., §§ 369-f-369-0.

JAMAICA BAY CANAL.

See Canals.

JEFFERSON COUNTY.

Stenographer of county court; Judiciary L., § 319, subd. 8.

JOINT STOCK ASSOCIATIONS.

Title of law changed, see General Associations Law.

JUDICIAL CONVENTION.

See Civil Practice.

VOL. X-62

Section cited.-People ex rel. Garrity v. Walsh (1917), 181 App. Div. 118, 168 N. Y. Supp. 440.

§ 3. Courts not of record.-5. The city court of the city of Rochester. (Subd. amended by L. 1918, ch. 498.)

§ 4. Courts not to sit on Sunday except in special cases.

The requirement that "the sittings of every court within this State shall be public, and every citizen may freely attend the same," does not merely mean that the doors are to be opened to all when the court is in session, but also that the general public shall be advised of the time and place of the holding of the terms of the courts. People ex rel. Childs v. Extraordinary Trial Term (1918), 184 App. Div. 829, 171 N. Y. Supp. 922.

§ 6. Adjournment of term on non-appearance of judge.

Section cited.-Saranac Land & Timber Co. v. Roberts (1919), 187 App. Div. 361, 175 N. Y. Supp. 545.

§ 15. Disqualification of judge by reason of interest or consanguinity. If a biased judge sits as a member of an appellate court, such court, on that fact being brought to its attention, must set aside its determination and allow a reargument. The presence of such a biased member affects the substantial right of the litigant. An attorney who acted for an executrix and legatee in probating a will and administering the estate is not entitled to sit as a justice of the Appellate Division on an appeal in action against the executor of his former client for an accounting. Seward v. Tasker (1913), 143 N. Y. Supp. 257.

§ 26. Additional compensation allowed judges in Kings, Bronx, Queens and Richmond counties, and in the city court of the city of New York, for services in attending the drawing of jurors. In the counties of Kings, Bronx, Queens and Richmond, there must be allowed to each judge, including each justice of the supreme court, and in the counties of New York and Bronx, including each justice of the city court of the city of New York, for the services performed by him in connection with the drawing of jurors, as prescribed in this chapter, such compensation as the board of estimate and apportionment of the city of New York deems reasonable and proper. Such compensation shall not exceed the amount now paid for additional compensation to the justices of the supreme court resident in the first judicial department. The board of estimate and apportionment of the city

L. 1918, ch. 105. Attorneys; admission and removal from practice. §§ 53, 84, 88. of New York may so fix the same, and shall raise and provide the money to pay the said compensation. (Amended by L. 1918, ch. 134 and L. 1920, ch. 588, in effect May 6, 1920.)

§ 53. Power of court of appeals as to admission of attorneys and counselors.-5. Nothing contained in this chapter prevents the court of appeals from dispensing, in the rules established by it, with the whole or any part of the stated period of clerkship, required from an applicant, or with the examination where the applicant is a graduate of the Albany law school, being the law department of the Union university, or of the law department of the university of the city of New York, or of the law school of Columbia college, or of the law school of the university of Buffalo, or the New York law school, or the college of law, Cornell university, or of the school of law, Syracuse university, or the Brooklyn law school of Saint Lawrence university, or Fordham university law school, or any law school duly registered by the regents of the university of the state of New York which requires a three year course for graduation and produces his diploma upon his application for admission. (Subd. amended by L. 1918, ch. 105.)

Waiver of requirement of rules requiring clerkship.-Matter of McGinnis (1918), 186 App. Div. 938, 173 N. Y. Supp. 209.

§ 84. Designation by appellate division of special and trial terms.

Section cited.-People ex rel. Childs v. Extraordinary Trial Term (1918), 184 App. Div. 829, 171 N. Y. Supp. 922; Saranac Land & Timber Co. v. Roberts (1919), 227 N. Y. 188, 125 N. E. 102, revg. 187 App. Div. 361, 175 N. Y. Supp. 545.

§ 88. Admission to and removal from practice by appellate division.-1. Upon the state board of law examiners certifying that a person has passed the required examination, or that the examination has been dispensed with, the appellate division of the supreme court in the department in which such person shall have resided for at least six months prior to such application, if it shall be satisfied that such person possesses the character and general fitness requisite for an attorney and counsellor-at-law, shall admit him to practice as such attorney and counsellor-at-law in all the courts of this state. (Subd. amended by L. 1918, ch. 105.)

Attorney at law disbarred for deceiving his client by false representations and for obtaining orders from the court upon affidavits made upon knowledge setting forth facts which were not true. Matter of Gladstone (1918), 185 App. Div. 471, 173 N. Y. Supp. 89.

For the deliberate conversion of his client's money and for deceiving said client by a knowingly false statement in writing written with intent to deceive. The respondent's plea ad misericordiam and restitution after the institution of the proceedings do not operate as a condonation of the offense. Matter of Hyman (1919), 186 App. Div. 263, 174 N. Y. Supp. 306.

For including in a complaint in an action for breach of promise to marry, indecent and scandalous matter for the sole purpose of forcing a settlement. Matter of Hansen (1918), 182 App. Div. 568, 169 N. Y. Supp. 881.